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United States foreign trade. FT900, Summary of U.S. export and import merchandise trade

Full Text

SUMMARY OF U.S. EXPORT AND

IMPORT MERCHANDp 7ADE

April 19/bJNIV oF LIB ': -

I ..

Ik %% FOR RELEASE

U.S. DEPOITORY 'g \ l Ma 7 M 1975

Seasonally Adjusted and Una Juele'ata

6:.H. : :. ::.
The Bureau of the Census, Department of Commerce
Anu nced today that during April 1975, seasonally
adjusted exports on a f.a.s. (free alongside ship) U.S.
port of exportation value basis, excluding Department of
Defense (DOD) Milfitary Assistance Program Grant-Aid ship-
ments, were valued at $8,569.6 million I and that
u .esenally adjusted general imports for the month, on a
.. .a.m. (free alongside ship) foreign port of exportation
ailaue basis, amounted to $8,012.8 million. 2 3 April
an" adnally adjusted general imports, on a c.z.f. (cost,
.* misursace, and freight) value basis amounted to $8,800.0
wU,. li. a s Comparable seasonally adjusted Lotals
for March were $8,715.9 million for exports, $7,335.6
""" lion for imports on a f.a.s. value basis, and$7,893.5
million for imports on a c.i.f. value basis.

.. The Bureau, part of the Department's Social and
coandmic Statistics Administration (SESA), noted that
:basted on the above seasonally adjusted f.a.s. export and
:dap'rt figures, a merchandise trade surplus of $556.8
::.il.lJion was recorded in April 1975. Using the c.i.f.
import value and the f.a.s. export value, quoted above,
t thmerchamdinse trade deficit of $230.4 million w as
Srecorded for April.

S br'Ding the first 4 months of 1975 (January-April),
Si piOrtB n a seasonally adjusted basis were at an annual
* vdrte bif $106,459 million, or about 9 percent higher than
*. t...l, calendar year 1974 total of $97,907 million. Sea-
S.o'iif.illy adjusted imports for the January-April 1975
periodd mere at an annual rate of $98,528 million, a level

about 2 percent below the calendar year 1974 total of
$100,218 million. (These figures are on a i.a.s. value
basis.)

The Bureau stated that seasonally adjusted exports
declined for the third successive month, to the lowest
level recorded since September 1974 when the total was
$8,396.3 million. April seasonally adjusted imports
(f.a.s. value basis) were the highest such total recorded
since January 1975 ($9,622.4 million).

During the 4-month period, January-April 1975, sea-
sonally adjusted exports averaged $8,871.6 million per
month, a level about 2 percent above the $8,726.3million
average reported for the preceding 4-month period,
September-December 1974. Imports (f.a.s. value basis)
averaged $8,210.7 million per month for the current
4-month period, about 8 percent less than the $8,920.5
million average reported for the preceding 4 months.

Exports unadjusted for seasonal change and excluding
Military Assistance Program Grant-Aid shipments decreased
from $9,437.6 million in March to $9,012.7 million in
April. With Military Assistance Program Grant-Aid ship-
ments included, exports decreased from $9,466.5 million
in March to $9,074.4 million in April. Unadjusted gen-
eral imports (f.a.s. value basis) nere valued at $7,455.9
million in March as compared to $8,181.1 million in
April. The comparable c.i.f. figures for imports were
$8,023.0 million in March and $8,984.8 million in April.

The U.S. import statistics reflect both government and
nongovernment imports of merchandise from foreign
countries into the U.S. Customs territory, which includes
the 50 States, the District of Columbia, and Puerto Rico.
The U.S. import statistics exclude imports into the Virgin
Islands, Guam, American Samoa, and other U.S. posses-
sions; and shipments between the United States and Puerto
Rico, between the United States and U.S. possessions, and
between any of these outlying areas. (Data on U.S. trade
with Puerto Rico and with U.S. possessions are published
separately in Report FT 800. Additional data on such trade
and on imports into the Virgin Islands from foreign
countries are presented in reference tabulations.)

The U.S. import statistics also exclude American goods
returned to the United States by its Armed Forces; intransit
shipments through the United States; temporary shipments;
transactions not considered to be of statistical significance,
such as shipments of personal and household effects;
low-valued nondutiable imports by mail; issued monetary
coins of all component metals; and gold in the form of ores,
concentrates, waste, scrap, and refined bullion. Imports of
silver in these forms are included in the statistics, unless
otherwise noted. (Information on gold movements, pre-
viously shown in Report FT 2402, appears in Report FT
990 effective Januay 1975.)

General Imports/Imports for Consumption

The official U.S. import statistics are compiled by the
Bureau of the Census from copies of the import entry and
warehouse withdrawal forms which importers are required
by law to file with Customs officials. The statistics are
presented in terms of both "General Imports" and "Imports
for Consumption." General imports are a combination of
entries for immediate consumption and entries into
Customs bonded warehouses and thus generally reflect total
arrivals of merchandise. Imports for consumption are a
combination of entries for immediate consumption and
withdrawals from warehouses for consumption and thus
generally reflect the total of the commodities entered into
U.S. consumption channels.

Import Valuation

F.a.s. Import Value

The f.a.s. (free alongside ship) value represents the
transaction value of imports at the foreign port of exporta-
tion. It is based on the purchase price, i.e., the actual
transaction value and generally includes all charges incurred
in placing the merchandise alongside the carrier at the port
of exportalion in the country of exportation.

C.i.f. Import Value

The c.i.f. (cost, insurance, and freight) value represents
the value of imports at the first port of entry in the United
States. It is based on the purchase price and includes all
freight, insurance, and other charges (excluding U.S. import
duties) incurred in bringing the merchandise from the
country of exportation and generally placing it alongside
the carrier at the first port of entry in the United States. If
the merchandise was acquired in a transaction between
related parties, the purchase price used in deriving the c.i.f.
value is based on an arm's-length equivalent transaction
price, i.e., a price which would exist between unrelated
buyers and sellers.

Import Monthly Carryover
It is the objective of the compiling procedures to include
shipments, insofar as practicable, in the statistics for the
actual month of importation. However, for purposes of the
statistics the month of importation is based on the date of
official acceptance by Customs of the import entry or
warehouse withdrawal document. This may not in all cases
correspond to the actual month of importation. (For
example, under .the Customs "immediate-delivery" pro-
cedures, importers may file the import entry up to 10
workdays after the actual date of importation.) Also,
because of processing problems (e.g., late receipt of a
document for an end-of-month shipment, rejection of a
shipment by the computer because the d4ta fail to meet
certain edit criteria established to protect the accuracy of
the statistics, etc.), there is an overall average carryover of
about 7 percent (in terms of value) of the shipments from
the reported month of importation (based on the date of
the import entry or warehouse withdrawal document) to a
subsequent month, usually the succeeding month. In addi-
tion, as a result of the aforementioned Customs "im-
mediate-delivery" procedures, there is a further carryover of
presently unknown magnitude from the actual month of
importation to a subsequent month. These limitations
should be borne in mind when making month-to-month
comparisons.
Cumulations of data over at least 4-month periods are
desirable to identify underlying trends. Month-to-month
changes in imports, exports, and similar series often reflect
primarily irregular movements, differences in monthly
carryover, etc.

Estimated Data for Imports Valued Under $251
The overall import and Schedule A Section 9 totals
include sample estimates for shipments valued under $251.
Therefore, they are subject to sampling error, estimated at
less than one-tenth of one percent for the unadjusted overall
total and about one percent for the unadjusted Schedule A
Section 9 total. This means that we can have about 67
percent confidence that the published unadjusted overall
totals and the unadjusted Schedule A Section 9 totals differ
by less than one-tenth of a percent and one percent,
respectively, from the totals that would have resulted from
a complete tabulation.

Export Statistics
Coverage
J The export statistics reflect, in general, both government
Sand nongovernment exports of domestic and foreign mer-
i chandise from the U.S. Customs territory (includes the 50
States, the District of Columbia, and Puerto Rico) to
foreign countries, whether the exportation involves a
commercial transaction or not. The statistics, therefore,
include Department of Defense Military Assistance Program
Grant-Aid shipments, shipments for economic assistance
under the Foreign Assistance Act and shipments of agri-
cultural commodities under P. L. 480 (The Agricultural
Trade Development and Assistance Act of 1954, as amend-
ed) and related laws. The following are excluded from the
statistics: Shipments to U.S. Armed Forces and diplomatic
missions abroad for their own use; shipments between the
United States and Puerto Rico, between the United States
and its possessions (including the Virgin Islands), and
between these outlying areas; exports from U.S. possessions;
intransit shipments through the United States; transactions
not considered to be of statistical importance, such as
personal and household effects; temporary exports; low-
valued or noncommercial exports by mail; issued monetary
coins of all component metals; and gold in the form of ores,
concentrates, waste, scrap, and refined bullion. Exports of
silver in these forms are included in the statistics, unless
otherwise noted. Information on gold movements, pre-
viously shown in Report FT 2402, appears in Report FT
990 effective January 1975.)
Exports of Domestic/Foreign Merchandise
The official U.S. export statistics are compiled by the
Bureau of the Census primarily from copies of Shipper's
;Export Declarations which are required to be filed with
:Customs officials, except for Department of Defense
Military Assistance Program Grant-Aid shipments which are
reported directly to the Bureau of the Census by the
Department of Defense and shipments by qualified ex-
porters who have been authorized to submit data in the
form of magnetic tape, punched cards, or monthly Shipper's
Summary Export Declarations directly to the Bureau of the
Census. The statistics are reported as exports of domestic or
foreign merchandise. Exports of domestic merchandise
include commodities which are grown, produced, or manu-
, factured in the United States, and commodities of foreign
I origin which have been changed in the United States from
the form in which they were imported, or which have been
Iknhanced in value by further manufacture in the United
States. Exports of foreign merchandise consist of commodi-
ties of foreign origin which have entered the United States
as imports and which, at the time of exportation, are in
substantially the same condition as when imported.
Export Valuation

F.a.s. Export Value

The value reported in the export statistics generally is
equivalent to a f.a.s. (free alongside ship) value at the U.S.
port of export, based on the transaction price, including
inland freight, insurance and other charges incurred in

placing the merchandise alongside the carrier at the U.S.
port of exportation.
Export Monthly Carryover
It is the objective of the compiling procedures to include
shipments, insofar as practicable, in the statistics for the
actual month of exportation. For purposes of the statistics,
the month of exportation is generally based on the date
when the shipment leaves the United States. (For vessel or
air shipments it is the date when the carrier departs or is
cleared from the port of export.) However, as indicated
above for imports, because of processing problems (e.g., late
receipt of a document for an end-of-month suhpment,
rejection of a shipment by the computer because the data
fail to meet certain edit criteria established to protect the
accuracy of the statistics, etc.), there is an overall average
carryover of about 5 percent tin terms of value) of the
shipments from the actual month of exportation to a
subsequent month, usually the succeeding month. These
limitations should be borne in mind when making month-
to-month comparisons.
Cumulations of data over at least 4-month periods are
desirable to identify underlying trends. Month-to-month
changes in imports, exports, and similar series often reflect
primarily irregular movements, differences in monthly
carryover, etc.
Estimated Data for Export Shipments Valued
Under $1,000 to Countries Other Than
Canada, Under $2,000 to Canada
The overall export and Schedule B section and division
totals include sample estimates for shipments valued
$251-$1,999 to Canada and for shipments valued
$251-$999 to countries other than Canada. Data for
shipments valued $250 and under to all countries are also
estimated, based on established percentages of individual
country totals, and included in the Schedule B Section 9
totals regardless of the commodity exported. It is estimated
that the unadjusted overall total is subject to a sampling
error of less than one-tenth of one percent, and the
unadjusted Schedule B section or division totals are subject
to sampling errors of about one percent. In addition, the
Schedule B Section 9 total is subject to possible error in the
estimated data for shipments valued $250 and under; and
the overall total, and the individual totals for sections other
than Section 9. to a more limited extent. Such $250 and
under shipments represent about 1.5 percent of the total
value of exports, and about 60 percent of the Schedule B
Section 9 total.
Other Sources of Error
in the Statistics
Monthly import and export figures are subject to the
possibility of errors which may arise from sources other
than sampling errors, discussed above. Among these are
errors in the reporting and/or processing of information as
to commodity classification, value and other statistical
factors, month of inclusion (see paragraphs on import and
export carryover, above), and the undercounting of exports
to Canada due to the non-receipt of Shipper's Export
Declarations. For 1973, the undercounting amounted to
about one billion dollars. In the case of imports the

information as to value and commodity classification (as
well as country of origin and net quantity) is verified by
Customs officials on entries filed for transactions valued
over $250 which are ordinarily subject to examination for
Customs appraisement purposes, thus considerably reducing
the possibility of error. In addition, the procedures used to
compile both the import and export statistics include clerical
and computer processing checks designed to protect the
accuracy of the statistics to the fullest practicable extent.
Merchandise Trade Balances

Two trade balances are presented in this report:
1) The balance between exports based on f.a.s. values
and imports based on f.a.s. values.
2) The balance between exports based on f.a.s. values
and imports based on c.i.f. values with adjustments for
imports from affiliated sellers abroad.to reflect arms-length
equivalent prices.
Both balances are useful for certain purposes. The first
balance corresponds to a measurement of the international
payments or credit flows resulting from merchandise trade
between the U.S. and foreign countries. The second balance
is based on concepts similar to those used by most foreign
countries, and therefore provides a reference for com-
parison with the trade balances published by those coun-
tries.

Revisions to the Statistics

Revisions are carried into the statistics on a periodic
basis. Data for 1974 and 1975 appearing in the 1975
monthly issues of this report are presented as follows-

1975 Statisitcs

a. January through November 1975 issues. figures are as
originally issued, except as noted below.

b. December 1975 issue: figures reflect revisions for
prior months of the year issued with December 1975
statistics or earlier, as noted below.

1974 Statistics

a. January through May 1975 issues: figures reflect
revisions issued with December 197.4 statistics or
earlier.
b. June through December 1975 issues: figures reflect
revisions to 1974 data issued with June 1975 statistics
or earlier.

In addition to the revisions which are made on a periodic
basis, instances may occur where a significant error in the
statistics for a month of the current year is discovered after
the statistics for that month are compiled. If the error is of
sufficient importance to require correction prior to the time
that the regular revisions are carried, the correction is made
and so noted in this report.

Sources of Further Information

Additional foreign trade statistics and information re-
garding coverage, valuation, sampling, and qualifications
which should be considered by users of the statistics are
contained primarily in the following publications: Report
FT 990. Highlights of U.S. Export and Import Trade; FT
135. U.S. General Imports, Schedule A Commodity by
Country; FT 410, U.S. Exports, Schedule B Commodity by
Country, and the Guide to Foreign Trade Statistics.
Information regarding additional sources of statistics, the
methodology used in seasonally adjusting the data, and
other matters relating to foreign trade statistics may be
obtained from the Bureau of the Census, Washington, D.C.
20233.

Assistance Program Grant-Aid Shipments, by Month: January 1974 to April 1975

(In millions of dollars. See ExplanatBior of Statistic. for information on coverage, definition of f.a.s. export value, and sources of error in
the data. Unaujusted totals represent sum of unrounded figures and hena may vary s ightly fraon sum of rounded amounts)

'%djusted [or sessoral rand torKir,g-dal .arastlon uInrg seasonal adjustment factors introduced in January 1975. See footnote I an front
page.
'Representa only etrport shipment: trin the linitea sttes- apu differs iror. DOD Military Avsl'tar.ce Program Grant-Aid shipment figures under
thills program as follows- a) Transfer; of Lhe material procured outside the Jnllted States ana transfers Icra DDD overseas stocks from export
shipmeLnta. (h) Export value is f.a.s.. ishereas DOD value, is most Instancs,. is f.o.b., point of origin. (c) Data for shipments reporLed by
tne DOD for a given monli are include in Bureau of the Census reports In the second month subsequent to the month reported by the DOD.
'Annual total is not shoanr for -'ea. -nali ad ju.teo data. [naujastea acal should be used for annual totals.

Table 4. U.S. Imports of Merchandise, by Month: January 1974 to April 1975

'Adjusted for seasonal ana working-day barialt on using seasonal adju.t,aet,t Eactors introduced in Jarca-r 197..
dAnnual total is not shuAn or seasoinall adju ste data. Unadjuareo atia wnooud be used tor .ranu. to'al.

8

Table 5. U.S. Exports (f.a.s. Value Basis) of Domestic Merchandise, Including Department of Defense (DOD) Military

Assistance Program Grant-Aid Shipments--Schedule B Sections and Selected Divisions, Seasonally Adjusted
and Unadjusted, by Month: January 1974 to April 1975
in millions of dollars. See rEplarnLtion of Straastcs for informaation on coverage, dleinition of I.a.E. expert value, and sources of error tn
the data. Unadjustced totals represent Eumn of unroundea figures and hence may vary slightly from s.n, of rounded amounts1

Table 7. U.S. General Imports (c.i.f. Value Basis) of Merchandise, Schedule A Sections, Seasonally Adjusted and
Unadjusted, by Month: January 1974 to April 1975
Iin millions of dollar. See Fxplanation of Statistics for Inforsat kon on coverage. definition of c.l.f. timport value, and sources of error in
the data. Unadiusted totals represent am of unrounded fIgures and hence may vary slightly from som of rounded amounts)